RBA interest rate update: March 2022
Today, the Reserve Bank of Australia (RBA) decided to keep the official interest rate on hold and it’s expected that rates will remain at this level for many months. The decision came alongside the standard jargon about the economy but also referenced Ukraine and COVID-19 variant Omicron – there’s a lot to unpick, so our team has dug into the details and pulled out the most relevant parts for our savvy members.
1. The big picture
The Australian economy is recovering well following the Omicron outbreak. More people are in jobs and the RBA expects the unemployment rate to drop below 4%. With more demand for workers, wages growth has picked up and this has also impacted inflation – which is the general rise in the price of goods and services. So if you’ve noticed that you are spending more on petrol and groceries lately, you’re not alone.
Here are some savvy ways to save money to help fund the weekly bills.
2. Record low rates
Interest rates remain at record lows and the RBA expects this to remain the case for some time. Whether you’re a first home buyer, thinking about a loan for a luxury car or just want to refinance an existing arrangement, you’ll be impressed by the interest rates that are out there.
You can also consider a fixed-rate home loan which will allow you to lock in the rate for anywhere between one and five years, giving you certainty on the amount you’ll be paying even if general interest rates change.
3. Vote with your feet
There’s one person who is better placed than anyone to get a new deal – and that’s you! If you have an existing loan and want to see what offers are available to you right now, call your existing lender or broker and demand a lower rate. This can sound daunting but long gone are the days when you have to prove yourself to an almighty bank manager. It’s your money and there is plenty of competition out there.